Correlation Between Bicara Therapeutics and Stevanato Group
Can any of the company-specific risk be diversified away by investing in both Bicara Therapeutics and Stevanato Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bicara Therapeutics and Stevanato Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bicara Therapeutics Common and Stevanato Group SpA, you can compare the effects of market volatilities on Bicara Therapeutics and Stevanato Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bicara Therapeutics with a short position of Stevanato Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bicara Therapeutics and Stevanato Group.
Diversification Opportunities for Bicara Therapeutics and Stevanato Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bicara and Stevanato is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bicara Therapeutics Common and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA and Bicara Therapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bicara Therapeutics Common are associated (or correlated) with Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of Bicara Therapeutics i.e., Bicara Therapeutics and Stevanato Group go up and down completely randomly.
Pair Corralation between Bicara Therapeutics and Stevanato Group
Given the investment horizon of 90 days Bicara Therapeutics Common is expected to generate 1.45 times more return on investment than Stevanato Group. However, Bicara Therapeutics is 1.45 times more volatile than Stevanato Group SpA. It trades about 0.09 of its potential returns per unit of risk. Stevanato Group SpA is currently generating about -0.01 per unit of risk. If you would invest 1,165 in Bicara Therapeutics Common on November 28, 2024 and sell it today you would earn a total of 68.00 from holding Bicara Therapeutics Common or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bicara Therapeutics Common vs. Stevanato Group SpA
Performance |
| Timeline |
| Bicara Therapeutics |
| Stevanato Group SpA |
Bicara Therapeutics and Stevanato Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bicara Therapeutics and Stevanato Group
The main advantage of trading using opposite Bicara Therapeutics and Stevanato Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bicara Therapeutics position performs unexpectedly, Stevanato Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stevanato Group will offset losses from the drop in Stevanato Group's long position.| Bicara Therapeutics vs. Ambev SA ADR | Bicara Therapeutics vs. Precision Drilling | Bicara Therapeutics vs. Helmerich and Payne | Bicara Therapeutics vs. Bridgford Foods |
| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |